August
10 (DETROIT) - A Canton Township
pharmacist and pharmacy owner, along with
five other associates, were found guilty
today by a federal jury on twenty-six counts
of an Indictment charging him with conspiracy,
health care fraud, and controlled substance
distribution, United States Attorney Barbara
L. McQuade announced today.

The
jury deliberated a little more than three
days before returning the verdict, concluding
a six-week trial before United States District
Judge Arthur J. Tarnow.

U.
S. Attorney Barbara McQuade was joined in
the announcement by Special Agent in Charge
Robert L. Corso of the Drug Enforcement Administration
(DEA), Special Agent in Charge Robert D.
Foley III of the Federal Bureau of Investigation,
and Lamont Pugh, Special Agent in Charge
of the Inspector General of the Department
of Health and Human Services.

The
jury convicted Babubhai (Bob) Patel, 49,
four pharmacists he employed, Brijesh Rawal,
36, of Canton, Ashwini Sharma, 34, of Novi,
Lokesh Tayal, 36, of Northville, and Viral
Thaker, 31 of Findlay, Ohio, and one of Patel's
business associates, Komal Acharya, 28, of
Farmington Hills. Brijesh Rawal, Ashwini
Sharma, Lokesh Tayal, and Viral Thaker were
convicted of conspiracies to commit health
care fraud and to distribute controlled substances;
and Komal Acharya was convicted of the sole
charge she faced, conspiracy to commit health
care fraud. In addition, Brijesh Rawal was
convicted of one count of substantive health
care fraud and three counts of substantive
controlled substance distribution, in addition
to the conspiracies; Viral Thaker was convicted
of two substantive health care fraud counts
and two substantive distribution counts.
The jury was unable to reach a verdict on
the sole count pending against Harpreet Sachdeva.

"These
defendants stole money from the Medicare
and Medicaid programs, which are designed
to provide health care and medicine to some
of our most vulnerable citizens," U.
S. Attorney Barbara McQuade said. "Pharmacists
and health care providers should be aware
that we are scrutinizing records to detect
and prosecute health care fraud."

Robert
L. Corso, Special Agent in Charge of DEA's
Detroit Field Division stated, "Confronting
the illegal diversion and abuse of controlled
pharmaceuticals is a top priority of DEA
and our law enforcement partners. Today's
verdicts eliminated one of the largest diversion
conspiracies ever uncovered in the state
of Michigan. The convictions, particularly
of the medical professionals, are significant.
These individuals abused their positions
of trust and endangered the lives of countless
people by illegally distributing opiate painkillers
and depressants throughout southeast Michigan
and beyond. This investigation makes it clear
that the DEA and our partners in law enforcement
will continue to investigate and bring to
justice those individuals that are responsible
for the illegal distribution of prescription
medicines."

"The
diversion of prescription drugs coupled with
the submission of fraudulent claims to Medicare
creates a toxic scenario that can place an
individual's health and safety at risk as
well as taxpayers' dollars" said Lamont
Pugh III, Special Agent in Charge of the
Chicago Region for the U.S. Department of
Health and Human Services, Office of Inspector
General. "The OIG will continue to work
diligently with our law enforcement partners
to hold those who seek to harm the Medicare
program accountable."

FBI
Special Agent in Charge Foley stated, "Those
who abuse our health care system by stealing
tax payer dollars will be brought to justice.
Pharmacists and others who engage in criminal
activity in order to enrich themselves financially
will be held accountable for their illegal
acts. The FBI is committed to stopping this
form of fraud."

The
evidence presented at trial demonstrated
that, from approximately January 2006 through
August 2011, Babubhai Patel owned and controlled
over 20 pharmacies, which were operated in
and around Detroit, Michigan. In addition,
the evidence showed that Patel's model for
turning a profit at his pharmacies was based
upon large-scale health care fraud and the
diversion of controlled substances. Patel
and his associates paid cash kickbacks and
other forms of illegal remuneration to physicians
in exchange for those physicians writing
prescriptions for expensive medications,
without regard to medical necessity, that
could be billed to Medicare, Medicaid, or
a private insurer through one of the Patel
Pharmacies. Physicians affiliated with Babubhai
Patel would also write prescriptions for
controlled substances for their patients,
again regardless of medical necessity, which
would then be filled at one of the Patel
Pharmacies. These controlled substances were
distributed to patients and patient recruiters
as a kickback in exchange for the patients
using a Patel Pharmacy.

Pharmacists
within the Patel Pharmacies, including defendants
Rawal, Tayal, Sharma, and Thaker, facilitated
the fraud and controlled substance distribution
schemes by billing Medicare, Medicaid, and
private insurers for expensive, non-controlled
medications which they had in inventory but
never actually dispensed to the patients.
The surplus of medications generated through
this practice was returned to wholesalers,
thereby enabling the Patel organization to
maximize its profit on its inventory of medications
which were billed for but never dispensed.
The defendants billed insurers for dispensing
medications that they knew were prescribed
outside the course of legitimate medical
practice, thus defrauding insurers by billing
for medications regardless of medical necessity.
The defendants would provide controlled drugs
to patients and patient recruiters, knowing
that those medications were prescribed outside
the course of legitimate medical practice.

Evidence
also showed that Acharya assisted Patel in
sustaining the illegal health care fraud
scheme at his pharmacies, principally by
helping Patel and others conceal the proceeds
of the fraud.

The
case was investigated by the DEA, the Department
of Health and Human Services-Office of Inspector
General, and the FBI. The case was prosecuted
by Assistant United States Attorneys John K.
Neal and Wayne F. Pratt.